World’s First Green Technology Shipping ETF Launched By ETFMG

116

  • ETF Managers Group LLC recently announced the launch of the ETFMG Breakwave Sea Decarbonisation Tech Exchange Traded Fund BSEA.
  • The fund includes companies involved in cleaner propulsion (including alternative fuels, batteries and fuel cells), carbon capture technologies and offshore wind development.
  • The fund charges 75 bps in fees. NEL ASA (4.19%), ITM Power (4.02%) and YARA International (3.93%) are the top three stocks of the 50-stock fund.

ETF Managers Group LLC recently announced the launch of the ETFMG Breakwave Sea Decarbonisation Tech Exchange Traded Fund (ETF) BSEA, says an article published on Yahoo finance website. 

ETFMG breakwave sea decarbonization tech ETF (BSEA) in focus

The fund looks to provide investors access to a diversified set of global companies involved in actively reducing the environmental impact of the global maritime sector, including those that develop technologies, manufacture equipment or provide services related to marine or ocean decarbonization. 

The fund includes companies involved in cleaner propulsion (including alternative fuels, batteries and fuel cells), carbon capture technologies and offshore wind development.

The fund charges 75 bps in fees. NEL ASA (4.19%), ITM Power (4.02%) and YARA International (3.93%) are the top three stocks of the 50-stock fund.

How does it fit in a portfolio?

The International Maritime Organization, a UN body, has enacted a strategy to lower CO2 emissions in the maritime industry by 70% from the 2008 levels within 2050 while net zero carbon emissions will need $50 trillion of investment by 2050, per the source.

“As the industry embarks on a multi-decade process of mandated decarbonisation, the Marine Money Decarbonisation Index will help investors participate in this significant opportunity,” said Matt McCleery, President of Marine Money, as quoted on the press release. So, the need for a green shipping ETF is understandable.

Of late, we have seen a surge in investors’ interest in the shipping ETF. This has not missed fund issuers’ notice. Breakwave Dry Bulk Shipping ETF BDRY is up 346% this year.  

The demand for shipping is high given the improvement in global economic growth and a commodity boom from easing COVID-led restrictions.

Competition

The fund will face competition fromBDRY and SonicShares Global Shipping ETF BOAT, though the duo does not have any exposure to green technology. The expense ratio of BDRY 3.32% while BOAT charges 69 bps in fees.

Hence, the expense ratio of BSEA looks reasonable and should not come in the way of the asset generation of the fund. Moreover, due to its green exposure, BSEA looks to be a more socially responsible investment option (read: Guide to Socially Responsible ETFs).

Did you subscribe to our daily newsletter?

It’s Free! Click here to Subscribe!

Source: yahoo 

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.